crude weekly insights – Fuel oil markets – FO LDO prices fell in India
Crude flat prices moved flat this week ending on 3rd July, 2026 . Brent Oct futures ended the week at around $72. Tanker traffic at SoH and production numbers in gulf are in focus during the week. Markets were driven on the begining day with elevated U.S-Iran tensions. Sentiment remains gloomy amid weak demand from Asia.
Timespreads moved weak along with crude benchmarks. Flat price structure moving on the edge of prompt contango amid supply glut through SoH barrels and ME ramping up production.
Inventories data showed draws across major three trading zones. DOE data showed that U.S crude drew 3.78 M while gasoline with 2.33M where as distillates were built up
Refined product markets outperformed crude markets. Gasoline and Distillates were on the record highest levels against the falling crude prices.
Market Positioning data showed that the speculators continued to leave crude markets. Money managers reduced their net length in Brent crude oil futures and options by 34704 to 55634 in the week ending June 30th. Long only positions fell by 11724 while short only positions rose by 22980 as per ICE data.
FUEL OIL MARKETS -WEEKLY MARKET SUMMARY
HSFO prices remained relatively stable during the week, trading within a narrow range of $451–460/MT, indicating balanced market fundamentals despite softer crude prices. In contrast, VLSFO 0.5% declined sharply from $705/MT to $649/MT, reflecting bearish market sentiment driven by weaker marine fuel demand and easing refinery margins. The narrowing spread between HSFO and VLSFO suggests reduced premiums for low-sulphur bunker fuels, with the near-term outlook remaining neutral for HSFO and bearish for VLSFO unless supported by stronger crude prices or improved bunker demand.
